Contingent liabilities and other financial obligations

The contingent liabilities and other financial obligations in the following table are not recognized in the balance sheet.

2016

2015

Operating leases and rents

83

93

Guarantee obligations on behalf of associates and third parties

117

142

Outstanding orders for projects under construction

31

21

Other

4

4

Total

235

260

Guarantee obligations are principally related to VAT and duties on the one hand and to financing obligations of associates on the other. Most of the outstanding orders for projects under construction will be completed in 2017. Property, plant and equipment under operating leases primarily concerns catalysts, buildings and various equipment items.

The commitments for operating leases and rents are spread as follows:

Operating leases and rents

2016

2015

2016

-

43

2017

31

5

2018

4

4

2019

4

3

2020

4

3

2021

4

3

After 2021

36

32

Total

83

93

Litigation

DSM has a process in place to monitor legal claims periodically and systematically.

DSM is involved in several legal proceedings, most of which are related to the ordinary course of business. DSM does not expect these proceedings to result in liabilities that have a material effect on the company's financial position. In cases where it is probable that the outcome of the proceedings will be unfavorable, and the financial outcome can be measured reliably, a provision has been recognized in the financial statements and disclosed in Note 18 'Provisions'.

In 2015 an award was issued against DSM Sinochem Pharmaceuticals India Private Ltd. (DSP India) in a protracted arbitration case in India going back to 2004 involving a joint venture that DSP India had formed with Hindustan Antibiotics Ltd., which suspended its operations in 2003. DSP India is covered by an indemnity from Koninklijke DSM N.V. for this case. In 2015 DSP India has made an application with the Civil Court in Pune (India) to set aside the arbitral award. The award amounts to approximately €18 million (excluding interest of 12% per annum). At the end of 2016, the application proceedings were still pending. DSM has always viewed this case as unfounded and is of the opinion that the likelihood of the award being ultimately set aside is high. Therefore no liability is recognized in respect of this case.